On Track to Double Program Funding The Department of Energy and Environmental Protection (DEEP) released the 2012 Integrated Resources Plan (IRP), a guiding document which calls for a doubling of energy efficiency program funding. In July DEEP released its final determination to approve the 2012 Expanded Conservation & Load Management Expanded Plan and Budget, which greatly expands energy efficiency programs in the state. While the Energy Efficiency Board (EEB) and the utility program administrators continue to work under the 2012 plan, progress is being made on efforts to make sure the next plan integrates electric and gas programs and is a multi-year plan, with the 2013 plan due to Public Utility Regulatory Authority (PURA) in early November of this year. At time of writing, the state is awaiting PURA’s ruling on these matters under Docket 12-02-01, as well as a ruling on how the state should fund an expanded efficiency scenario.
Putting Efficiency in the Rates Under a proposal by the electric utilities and endorsed by the EEB, the majority of funding to supplement the systems benefit charge in order to capture all cost-effective energy efficiency will come from a new electric conservation adjustment mechanism (CAM3). While utilities will continue to collect a systems benefit charge (SBC) at the 3 mil level, the CAM will allow the state to make up the difference in what has been judged as available and cost-effective efficiency measures, treating efficiency as a resource to be procured through customer rates in a manner similar to generation resources — but at a much lower cost. The CAM will function akin to the Energy Efficiency Reconciliation Factor (EERF) that has been in place in Massachusetts through the duration of its three-year efficiency plan. Both states have committed to conducting customer bill impact analyses to assess the costs and benefits of a robust funding scenario.
Clean Energy Finance Authority The Connecticut Clean Energy Finance and Investment Authority (CEFIA) was also created last year under Public Act 11-80. CEFIA bills itself as the nation’s first full-scale clean energy finance authority, working to leverage public and private funds to drive investment and scale up clean energy deployment in Connecticut. The Authority offers incentives and innovative low-cost financing to encourage homeowners, companies, municipalities, and other institutions to support renewable energy and energy efficiency. One of its most anticipated programs is Commercial and Industrial “PACE,” or Property-Assessed Clean Energy financing. PACE loans can be financed and re-paid through property tax assessment over 20 years. The CEFIA model is innovative because it allows municipalities to opt-in to the state program rather than administer their own program. The Commercial and Industrial PACE program, like all of CEFIA’s initiatives, is meant to leverage ratepayer-funded program with private capital to put clean energy and efficiency projects within reach for customers.
3 For more on the CAM, see pg. 31 of DEEP’s determination on the 2012 C&LM Plans: http://www.ctenergyinfo.com/7-19-12%20 Final%20Determination%20Expanded%20Plan.pdf
2012 regional roundup of energy efficiency policy page 7